Here's yesterday's piece of unfortunate news, for those that were unable to see it.
On December 6, Destination Maternity has filed its total claims, which appeared online in the 8:00PM hour that evening, which greatly exceed earlier published estimates, as well as coming in far above the estimated 58M proceeds from the sale of the company.
Destination Maternity has declared:
53,388,609.10 of total secured claims (Wells Fargo, etc.) and
36,269,055.98 of total unsecured claims.
89,657,665.08 = TOTAL CLAIMS
Shareholders are most often the last (if any) to get a payment in bankruptcy, so, it would appear to still be necessary for some competitive bids to come through in order for us shareholders to secure a payout.
I had cautioned, sometimes explicitly, that the great majority of bankruptcy stocks are worthless, and that the original $50M bid did NOT necessarily equate to anything in shareholder value.
I have reminded all that the company had already issued a declaration of worthlessness of stock on October 21, 2019, subject to reviews by the court.
The good news is that it's not always over until it's over. (See: SEARS.) The bad news is, we're pretty much sunk at the moment, without an angel sort of investor swooping in and buying either the company, or trying to buy up all its remaining shares right at the deadline in a manner to try to control the outcome of the bankruptcy proceedings, to an extent that such may become seen as a cheaper alternative than the competitive bidding process which is right now expected to be just $60M (plus any legal fees).
